Dairy co-operative Arla has announced a further milk price increase from July as farmers continue to see 'drastic' inflation.
From 1 July, there will be an increase of 1.66p per litre to the Arla on-account price for conventional milk and 0.74ppl rise for organic.
This will increase the farmgate milk price for the standard manufacturing litre to 49.45 ppl for conventional and 55.11 ppl for organic milk.
The quarterly currency exchange rate adjustment will negatively impact the on-account price by 0.12 ppkg.
The price increase comes as UK inflation sits at a 40-year high, with farmers continuing to face surging costs for feed, fertiliser and fuel.
Arla Foods amba board director, Arthur Fearnall said it was a 'much-needed' price boost as on-farm costs had seen 'drastic' inflation in recent months.
“Over the last few months, we, as farmer owners, have been pleased to see a significant increase in our farmgate milk price for both conventional and organic milk.
"Commodity prices, which have been climbing, have now begun to stabilise although remaining at a high-level and we continue to see a decline in the overall milk supply across the EU. Nonetheless, the outlook for the future is stable.”
Paul Savage, agriculture director for Arla UK added: “In the UK, we continue to face a period of significant inflation which, in particular, is adding pressure to the UK Organic market overall.
"It is against this backdrop that we are pleased to have been able to secure this latest increase in the overall price for our organic milk.”
Dairy farmers supplying Muller who meet the conditions of the processor's Advantage scheme will also see a substantial milk price increase, of 4.5ppl to 46ppl from 1 July.
First Milk announced that its milk price will increase by 1.4ppl from July and by a further 3.05ppl from August.
And Chester-based Meadow Foods will increase its milk price by 3.75ppl to 46ppl.
